Bitcoin dominance hints at ‘altseason’, analysts see XRP price in 2025

Bitcoin's dominance has printed a significant signal for altcoin investors, which could see smaller cryptocurrencies rally in December and attract more investments before January 20.

Bitcoin (BTC) Dominance, which measures the ratio of Bitcoin to the total value of the crypto market, has fallen below its two-year support line to 56.1%, indicating that the market is “officially in a recession,” wrote prominent analyst Mikubul. Crypto, in a November 30 X post.

In crypto slang, altseason, short for altcoin season, refers to a collective rally of cryptocurrencies in addition to Bitcoin, whose dominance is waning.

The decline in Bitcoin dominance suggests that investors are taking profits from their BTC positions and investing a portion of these funds into altcoins.

Crypto investor interest has spread to smaller assets such as Ether (ETH). President-elect Donald Trump Interest in Ether exchange-traded funds (ETFs) has increased more than 160 percent since the 2024 presidential election on November 5.

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Analysts see $2.57 XRP price in December

The XRP (XRP) coin, the world's sixth-largest cryptocurrency, could benefit from Bitcoin's falling dominance.

According to Ryan Lee, chief analyst at Bitget Research, based on the current market structure, the price of XRP may increase to $2.57 before the end of 2024.

The analyst told Cointelegraph:

“XRP is expected to reach $2.57 during that period [December 2024]. Specifically, XRP price trends may be influenced by Bitcoin's halving event. Historically, XRP has experienced significant gains around 228 days after Bitcoin's halving.

Further growth in the XRP ETF will be a major price driver for the coin, Lee added.

Asset manager 21Shares became the third company to seek an XRP ETF and was the latest to register an XRP ETF with the US Securities and Exchange Commission (SEC) on November 1.

Related: Bitcoin May Attract $2T From New $20T Money Supply By 2025

SEC Chairman Gensler's departure to fuel the crypto rally to 2025

XRP and other altcoins could benefit from fundamental price stimulus heading into the first month of 2025.

One of the biggest boosts will come on January 20, when SEC Chairman Gary Gensler steps down from leading the securities regulator — which could mean more crypto-based ETFs and the adoption of favorable cryptocurrency regulations.

Trump's presidential inauguration on January 20 is also expected to increase investors' risk appetite. Some analysts have predicted a rally of Ether above $4,000 until Trump's inauguration.

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